CBC Mortgage Agency, a federally chartered tribal government entity
Chenoa Fund Down Payment Assistance
A nationwide 3.5% or 5% second mortgage that covers the entire FHA down payment, available in nearly every state.
Accepting new reservations as of our last check.
Assistance amount
Up to $25,000 (about 5%)
Structure
Forgivable loan — erased over time
Where it works
Nationwide
First-time buyer required
No — repeat buyers qualify
Minimum credit score
600
Funding status
Active · verified August 2026
Program overview
Chenoa Fund is the national fallback when your state runs out of money or you do not fit its rules. Run by CBC Mortgage Agency, it provides 3.5% or 5% of the purchase price as a second mortgage that covers the whole FHA down payment. If your income is at or below 135% of area median income, the second is forgiven after 36 months of on-time first mortgage payments. Above that, it is repayable — but still eliminates the cash barrier at closing.
Best for: Buyers in states with thin assistance, buyers with credit in the 600s, and buyers who missed their state program's funding window.
Who qualifies
- First-time buyer rule: There is no first-time buyer requirement, so repeat buyers can use it.
- Credit score: A 600 credit score is the floor on some options, which is the lowest of any widely available assistance program.
- Income limits: The forgivable tier requires income at or below 135% of area median income. Above that threshold you can still use the repayable option with no income cap.
- Occupancy: Primary residence only.
- Eligible loans: FHA, Conventional
- Homebuyer education: Not required, though it is still worth doing.
Do you pay it back?
Repayable or forgivable second depending on income tier. The forgivable option is erased after 36 months of on-time payments.
Check whether you qualify for Chenoa Fund Down Payment Assistance
The Finder compares your income, household size, credit band, county, and job to this program's published rules and tells you roughly what it is worth in dollars.
Advantages
- Available in nearly every state — one program, national footprint.
- Covers 100% of the FHA down payment.
- Credit floor as low as 600 on some options.
- A repayable option exists with no income limit at all.
Things to consider
- The first mortgage rate is meaningfully above market — this is the trade.
- The repayable option adds a real second monthly payment.
- Forgiveness requires 36 consecutive on-time payments; one late payment can void it.
- Not available in New York.
How to apply
- Confirm your household income against the current limit for your county and household size.
- Find a lender approved by Chenoa Fund. You cannot use just any lender — the agency maintains a participating list.
- Get pre-approved on the first mortgage the program requires.
- Complete homebuyer education if your lender asks for it.
- Write the offer with the assistance disclosed and a realistic closing timeline.
Ask RED: “Explain Chenoa Fund Down Payment Assistance to me in plain English.”
Ask REDPairing it with a loan
Frequently asked questions
Do I have to pay Chenoa Fund Down Payment Assistance back?
Repayable or forgivable second depending on income tier. The forgivable option is erased after 36 months of on-time payments.
How much money does Chenoa Fund Down Payment Assistance provide?
Up to $25,000 (about 5%). The exact figure depends on your loan amount, the option your lender selects, and the funding available at the time you reserve.
What credit score do I need for Chenoa Fund Down Payment Assistance?
A 600 credit score is the floor on some options, which is the lowest of any widely available assistance program.
Do I have to be a first-time homebuyer to use Chenoa Fund Down Payment Assistance?
No. Chenoa Fund Down Payment Assistance does not require you to be a first-time buyer, which makes it usable by repeat buyers who have sold a previous home.
Which loans can I use with Chenoa Fund Down Payment Assistance?
FHA, Conventional. The first mortgage has to come from a lender approved by Chenoa Fund — you cannot bring your own lender and add the assistance to it.
What are the income limits for Chenoa Fund Down Payment Assistance?
The forgivable tier requires income at or below 135% of area median income. Above that threshold you can still use the repayable option with no income cap.
Do I have to live in the home?
Primary residence only.
What credit score do I need for down payment assistance?
Most programs start at 620, some FHA-based programs go to 640, and a handful of manually underwritten paths accept 580. A higher score usually unlocks a larger assistance tier and a better interest rate.
Do I have to be a first-time buyer?
Usually, but 'first-time buyer' almost always means you have not owned a home in the last three years — not that you have never owned one. Some programs waive it entirely for veterans, for buyers in targeted areas, or for certain professions.
Related resources
ReadinessIQ is a Homebuyer Readiness Platform, not the agency that funds these programs. We publish what the agencies publish, link to the official source, and tell you when a rule is likely to change. The agency and your lender make the final call on who qualifies.